Sirius XM (SIRI) Q3 2026 Earnings
GAAP diluted EPS reflects accounting treatment of convertible notes, including adjustments for fair value gains and assumed share dilution; other income (expense), net of $46 million in the quarter; impairment, restructuring and other costs of $10 million; legal settlements and reserves of $1 million
How Did SIRI Stock React to Q3 2026 Earnings?
Did SIRI Beat Earnings? Q3 2026 Results
No. Sirius XM reported Q3 2026 earnings of $0.78 a share on Oct 29, 2026, missing the $0.79 consensus estimate by 0.8%. Revenue was $2.2B against a $2.2B estimate.
Sirius XM Holdings delivered a quarter defined more by cost discipline than top-line momentum, narrowly missing consensus on both metrics as revenue slipped 0.3% year over year to $2.15 billion, just 0.04% below estimates, while GAAP diluted EPS of $0.78 fell short of the $0.79 consensus by 0.75%. The per-share figure, reported on a GAAP basis, reflects the accounting treatment of convertible notes, including fair value gains and assumed share dilution, as well as $46 million in other income (expense), net, $10 million in impairment, restructuring and other costs, and $1 million in legal settlements and reserves. The revenue shortfall traced largely to a 16% drop in equipment revenue driven by higher memory costs for hardware modules. Beneath the headline, the story was more constructive: Adjusted EBITDA grew 3% to $694 million, margin expanded a point to 32%, and free cash flow rose 14% to $293 million on leaner spending across programming, customer service, and marketing. With Spotify drawing fresh investor attention for subscriber momentum in the broader audio market, SiriusXM countered by raising full-year 2026 guidance for the second consecutive quarter, lifting revenue, Adjusted EBITDA, and free cash flow targets each by $25 million to approximately $8.55 billion, $2.65 billion, and $1.40 billion, respectively, while signaling plans to meaningfully accelerate buybacks in 2027 as satellite capital expenditures decline.
- Lower programming costs (down 6%) from favorable contract renewals
- Customer service and billing expenses down 6% on increased automation and lower call volumes
- Sales and marketing down 4% on more targeted in-car subscriber acquisition spending
- Companion subscriptions added 107,000 incremental self-pay net additions
- Self-pay churn improved to 1.5% on the continuous service initiative and lower vehicle-related and non-pay churn
- Pandora advertising growth from podcasting, programmatic advertising and technology fees
- Free cash flow up 14% on higher Adjusted EBITDA, favorable working capital, lower interest expense and reduced capex
- Equipment revenue down 16% due to higher memory costs
“Our third-quarter performance reflects the progress we're making in building a stronger, more durable SiriusXM.”
Sirius XM CEO, on the earnings call
What Is Sirius XM's Outlook?
SiriusXM raised full-year 2026 guidance for the second consecutive quarter, increasing each key metric by $25 million. It now expects total revenue of approximately $8.55 billion, Adjusted EBITDA of approximately $2.65 billion and free cash flow of approximately $1.40 billion. The CFO said the more efficient operating model and declining satellite capital expenditures position the company to meaningfully accelerate share repurchases in 2027 while continuing to invest in the business.
SIRI YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.2B | $2.2B | −0.3% |
| Operating Income | $479.0M | $493.0M | −2.8% |
| Net Income | $317.0M | $297.0M | +6.7% |
SIRI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.